Diversity, Equity and Inclusion

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DEI backlash hits corporate America

Illustration: Annelise Capossela/Axios

U.S. companies' diversity, equity and inclusion efforts lost momentum this year after the Supreme Court's June affirmative action ruling, Axios' Emily Peck writes from a DEI consulting firm's new report. Why it matters: The slowdown is a reversal from the explosion in corporate DEI after George Floyd's killing in 2020 pushed companies to act to address racial inequality. "2023 has undeniably shifted the DEI landscape for years to come," write the authors of a report out today from Paradigm. "External forces are no longer pushing companies to invest in DEI; instead, in some cases, external forces are pushing back on companies' investment in DEI." 💨 Catch up fast: In June the Supreme Court struck down affirmative action at colleges — ruling that schools can't explicitly consider race in the admissions process. Since then, the group that brought that case — American Alliance for Equal Rights — sued two law firms, challenging minority fellowships that were open only to students of color, those who identify as LGBTQ+ or those who have disabilities. The group also sued a venture capital fund, the Fearless Fund, for investing solely in Black women. In response, the law firms revised the programs, broadening their criteria to all law students at a certain stage of school. The suits were dropped. Another major law firm, which had not been sued, proactively changed its fellowship. In a letter this summer, 13 Republican state attorneys general urged Fortune 100 companies to take another look at their DEI programs after the high court's decision. The lawsuits and letters "will have significant downstream consequences for DEI for years to come," Paradigm's report concludes. Paradigm also says companies have deprioritized DEI as the hiring frenzy of the past few years has slowed. Reality check: DEI efforts after 2020 had real impact. 94% of the headcount increase at large firms in 2021, from the previous year, stemmed from hiring people of color, according to a Bloomberg analysis of 88 S&P 100 firms. Explore the report ...

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Anti-DEI movement expands

Illustration: Natalie Peeples/Axios

The backlash over diversity, equity and inclusion programs (DEI) is sharpening in politics, business and academics, Axios' Erica Pandey reports. Why it matters: Diversity programs are being cut in business, pummeled by Republicans in politics and ridiculed in academics where donors have pulled millions. "I'm seeing a new trend," said Joelle Emerson, CEO of the DEI consulting firm Paradigm. "Those critiquing DEI aren't just the extreme, right-wing anti-progress activists." "They're also liberal-leaning people who are likely values-aligned with DEI in principle, but confused and misguided about what the work looks like in practice." 🖼️ The big picture: College DEI programs support historically underrepresented students and faculty members, including people of color, people with disabilities and veterans. Critics have argued for years that these programs make universities overly sensitive to only certain groups. They leapt to make that connection after university presidents hedged when asked how they'd respond to antisemitism on campus. In corporate America, DEI efforts lost momentum this year after a Supreme Court affirmative action ruling in June. "2023 has undeniably shifted the DEI landscape for years to come," Paradigm said in a report last month. What's happening: Billionaire hedge fund manager and Harvard alumnus Bill Ackman wrote an open letter to his alma mater calling for Claudine Gay to resign as president, and said the university's DEI office was a "major contributing source of discriminatory practices on campus." Gay's job is safe, Harvard's board said yesterday. Stacy Burdett, an antisemitism expert and former vice president of the Anti-Defamation League, said: "It's a reality that traditional DEI has not been inclusive enough of antisemitism and it's urgent to address the gaps." "The racial justice movement as we know it may not have imagined the need to support and protect a group of mostly white people who are targeted by hate crimes and identity-based harassment," she said. But she added that "the culture war against diversity, and efforts to turn DEI into a bogeyman don't make Jewish people safer. That's simply playing on Jewish fear to score political points." Flashback: Three years ago, after George Floyd's killing and the ensuing protests threw the lack of diversity at colleges and companies into the spotlight, universities were raking in funds to establish new DEI programs. Institutions, including Brown and UT Dallas, raised funds to increase accessibility, support DEI research and hire faculty. A slew of colleges around the country, including the University of Minnesota and Penn State, established new scholarships to support students from underrepresented backgrounds. 👓 What to watch: Bills to defund DEI efforts at public colleges or limit or ban identity-based faculty hiring have been proposed in 20 states this year.

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💼 Companies back away from "DEI"

Illustration: Annelise Capossela/Axios

Laudable goals like achieving "equity" and "diversity" and making people feel "included" have become weaponized terms, Axios' prolific Emily Peck reports. Why it matters: The year ahead will be pivotal for corporate diversity efforts, as attacks against DEI — diversity, equity and inclusion — will likely intensify. But for many employers, maintaining a diverse workforce where employees feel included is a key part of attracting and retaining workers. 💨 Catch up fast: It's been a long, strange trip for corporate diversity efforts — which can range from employee resource groups to anti-bias training to hiring programs. For years, DEI was criticized as corporate window dressing or for being counterproductive. More recently, conservative politicians and pundits have made DEI a target, with new laws limiting its practice cropping up in Florida and Texas. DEI funding and staffing stalled last year after a two-year boom in the wake of the protests that followed the murder of George Floyd in 2020. 🔭 Zoom out: The Supreme Court's decision last year overturning the use of affirmative action in universities has drawn attention to corporate diversity efforts. Businesses are trying to avoid any programs that could draw legal scrutiny: Goals around hiring particular demographic groups are increasingly frowned upon. "Anything that smacks of a quota" is out, said Diana Scott, Human Capital Center Leader at The Conference Board. At the same time, many business leaders say they're still committed to diversity. In a survey of chief human resource officers recently conducted by The Conference Board, zero respondents said they were planning to scale back DEI in 2024. State of play: This all means that the way DEI happens inside companies is changing. Some firms, including Blackstone, are focusing on hiring for socioeconomic diversity, and on changing job requirements to find more diverse talent without targeting race or ethnicity, Fortune reports. And businesses are pulling back from the DEI term. The focus is on moving away from "those three words" towards "well-being and inclusion," said Scott, the Conference Board official. 🔮 What's next: "Companies are really starting to look at other ways to do the work without saying that they're doing the work," said Cinnamon Clark, cofounder of Goodwork Sustainability, a DEI consulting firm. Businesses likely will be talking more about "employee experience" or "wellness," which falls under the inclusion bucket, said Clark.

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📊 Execs still committed to DEI

Illustration: Maura Losch/Axios

Executives remain committed to DEI — diversity, equity and inclusion — despite a rising backlash, Axios' Emily Peck writes from a survey out today from the employment law firm Littler. Why it matters: The results come as anti-DEI noise gets louder. But these programs have become an important part of employee relations and talent strategies for companies, Littler points out. 🔢 By the numbers: 57% of 322 U.S. execs surveyed by Littler in November said their organizations have expanded DEI programs over the past year. 36% maintained them. At the same time, 59% of execs — a mix of chief legal officers, chief diversity officers, chief people officers and other C-suiters — said they believe backlash has increased since the Supreme Court's June decision that race couldn't be used as an explicit factor in university admissions. 💨 Catch up fast: The court's ruling wasn't about employers. But companies grew anxious that any programs that take race into account would be vulnerable to litigation. Since then, activists have filed so-called reverse discrimination lawsuits against law firms for their minority fellowship programs. What's happening: For the most part, instead of panicking and getting rid of programs, companies are auditing their initiatives to ensure there are no legal risks, Littler's Jeanine Conley Daves says. 🕶️ What to watch: The moniker DEI itself. Littler uses the term IE&D — inclusion, equity and diversity — to reflect its prioritization of inclusion. We wouldn't be surprised to see more companies move away from the old term, too.

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As diversity, equity and inclusion comes under legal attack, companies quietly alter their programs

NEW YORK (AP) — Sophia Danner-Okotie’s has ambitious plans for her Nigerian-inspired clothing line but a sense of dread has punctured her optimism as she watches a legal battle being waged against a small venture capital firm that has provided funding instrumental to her boutique brand’s growth.

https://apnews.com/article/dei-diversity-corporations-affirmative-action-309864f08e6ec63a45d18ca5f25d7540?

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📚 Mapped: Anti-DEI bills surge

Data: National Conference of State Legislatures. Map: Axios Visuals Proposals aimed at dismantling diversity, equity and inclusion programs on college campuses have surged since 2021, Axios' Russell Contreras reports. Bills have been introduced in 21 states since 2021. Nine have approved such laws. Why it matters: The wave of anti-DEI bills in state legislatures has come amid an ongoing conservative backlash against initiatives aimed at fighting systemic racism. Just two states — Washington and New Mexico — have passed bills since 2022 requiring higher education institutions to offer training in DEI or antiracism.

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NAACP urges student-athletes to reconsider Florida colleges after state eliminates DEI programs

GAINESVILLE — Black student-athletes should reconsider attending public colleges and universities in Florida, the NAACP said in a letter to NCAA President Charlie Baker on Monday.

https://www.orlandosentinel.com/2024/03/11/naacp-urges-student-athletes-to-reconsider-florida-colleges-after-state-eliminates-dei-programs/?

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Should college essays touch on race? Some feel the affirmative action ruling leaves them no choice

CHICAGO (AP) — When she started writing her college essay, Hillary Amofa told the story she thought admissions offices wanted to hear. About being the daughter of immigrants from Ghana and growing up in a small apartment in Chicago. About hardship and struggle.

https://apnews.com/article/college-application-affirmative-action-f0c006a6210ab244c1b6b4c2b1926b6d?

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Inside DEI's fall

Data: AlphaSense. Chart: Axios Visuals Diversity, equity and inclusion (DEI) was the hot thing in corporate America a few years ago. Now the business world barely mentions it, Axios' Emily Peck writes. Why it matters: The business community — long averse to political risk — backed away from DEI programs over the past two years after attacks from lawmakers, high-profile rich guys and conservative activists. Other companies are sticking with these efforts but doing it quietly. Many business leaders are fed-up with DEI, Johnny Taylor, president of the Society for Human Resource Management told Axios. "The backlash is real," he said. "CEOs are literally putting the brakes on this DE&I work that was running strong" since George Floyd's murder in May 2020. 🔎 Zoom in: Some businesses are cutting back funding, trimming DEI staff and even considering pulling back on employee resource groups comprised of various races, ethnicities or interests. Others are changing programs designed to support women and people of color because of lawsuits. America First Legal, founded by former Trump aide Stephen Miller, has filed more than 20. 🥊 Reality check: There are still companies committed to hiring people from diverse backgrounds, figuring out how to foster inclusive workplaces and treating people fairly. But they're less likely to use those initials. Same with ESG — environmental, social and governance.

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UT-Dallas lays off DEI staff

Illustration: Allie Carl/Axios

UT Dallas is the latest Texas public university to lay off staff due to the new law barring diversity, equity and inclusion programs at state institutions. Why it matters: Texas is one of at least nine states to pass legislation limiting or prohibiting DEI programs on college campuses. Anti-DEI bills have been introduced in 21 states since 2021. State of play: Senate Bill 17, which took effect in January, bars public universities from maintaining offices or programs dedicated to supporting historically underrepresented groups, such as people of color or members of the LGBTQ+ community. Critics of the programs say they are discriminatory and emphasize assisting only certain groups. The latest: UT Dallas is eliminating 20 jobs and its Office of Campus Resources and Support at the end of the month to comply with SB 17, university president Richard C. Benson announced this week. The move comes a week after UT Austin laid off at least 60 people who had worked in DEI positions. Most jobs were in the Division of Campus and Community Engagement, per the Austin American-Statesman. Friction point: The bill author, state Sen. Brandon Creighton (R-Conroe), sent letters last month to the chancellors and boards of regents at Texas public universities saying the organizations have made progress complying with the law but many appear to have simply renamed their DEI programs. Zoom in: To comply with the law, the University of North Texas in December moved its staff from the Multicultural Center and Pride Alliance into Student Affairs. UNT president Neal Smatresk noted that the school would support everyone, "including our first-generation, low-income and underserved students." The law states that it does not limit the support of low-income and first-generation students. Of note: Student organizations are not affected by SB 17 and can continue to host programs on race, gender identity and sexual orientation. What's next: The state Senate Committee on Education plans to hold a hearing in May to determine whether universities are complying with the law. University leaders have until May 3 to submit written responses detailing how their schools have eliminated DEI programs. Full story

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Why three NC medical students think an anti-DEI bill would be a disaster for medicine

Washington, Hyde, Gates, and Yancey are four of the North Carolina counties without a single pediatrician, OB-GYN, or psychiatrist. This is not uncommon — 20 of our state’s counties lack a pediatrician, 26 lack an OB-GYN, and 32 lack a psychiatrist.

https://ncnewsline.com/2024/04/17/why-three-nc-medical-students-think-an-anti-dei-bill-would-be-a-disaster-for-medicine/?

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131 college scholarships put on hold or modified due to Texas DEI ban, documents show

For Richard Oliver, the night of June 3, 2014, was a parent’s worst nightmare.

https://www.dallasnews.com/news/education/2024/06/17/131-college-scholarships-put-on-hold-or-modified-due-to-texas-dei-ban-documents-show/?

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DeSantis, extremist Republicans hammering, wounding DEI

On June 2, a three-member panel of the U.S. Court of Appeals for the Eleventh Circuit ruled that the Fearless Fund — a Black-woman owned venture capital firm in Atlanta — violated the 1866 Civil Rights Act by awarding monetary grants to qualified Black women.

https://floridaphoenix.com/2024/06/30/desantis-extremist-republicans-hammering-wounding-dei/?

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Ending inclusion, extending inequality

Back in February, representatives of several right-wing groups told our mostly right-wing state senators that diversity programs and honest depictions of history were dangerous.

https://alabamareflector.com/2024/08/05/ending-inclusion-ensuring-inequality/?

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💼 More companies ditch DEI

Illustration: Lindsey Bailey/Axios

Ford is the latest major company to pull back on DEI efforts under pressure from conservative critics, Axios' Nathan Bomey reports. Ford CEO Jim Farley told workers in a letter that the automaker will withdraw from the Human Rights Campaign's Corporate Equality Index. He said Ford won't participate in other "best places to work" lists, but will still foster "an environment where all of us can do our best work anchored in respect and inclusion." A perfect score on the HRC index is considered the gold standard for companies that want to prove they're committed to LGBTQ+ causes — something companies used to brag about. Context: Harley-Davidson, Lowe's and Brown-Forman distillers (owner of Jack Daniel's) have also pulled out of the HRC index recently. Several other companies, including Tractor Supply and John Deere, have announced that they'll end or scale back once-heralded DEI programs. A leading anti-DEI activist, Robby Starbuck, said on X: "We're now forcing multi-billion dollar organizations to change their policies without even posting just from fear they have of being the next company that we expose." Go deeper.

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End of road for DEI

Illustration: Sarah Grillo/Axios

Companies in the U.S. were already backing off on DEI. Then Walmart entered the chat: This week the retail giant said it would cut back its diversity, equity and inclusion initiatives. Why it matters: Walmart is the largest private employer in the country, and where it goes others are likely to follow, Axios' Emily Peck writes. This is a win for Robby Starbuck, the 35-year-old "anti-woke" music producer-turned-activist who's pushed around a dozen companies to retreat on DEI this year. He first announced Walmart's move — and took credit for it — in a tweet on Monday. State of play: Walmart will phase out the term "diversity, equity and inclusion." It also will: End supplier diversity programs. Discontinue use of the term LatinX. Pull out of the Human Rights Campaign's Corporate Equality Index — a scorecard for a business's commitment to LGBTQ+ equality and causes. 🛒 Walmart said: "We've been on a journey and know we aren't perfect, but every decision comes from a place of wanting to foster a sense of belonging, to open doors to opportunities for all our associates, customers and suppliers and to be a Walmart for everyone." Go deeper with Axios Markets.

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Colleges dismantle DEI

Illustration: Allie Carl/Axios

Colleges across the country are shutting down expensive and expansive diversity, equity and inclusion initiatives, some of which were put in place just a few years ago. Why it matters: Bans are prompting colleges to close cultural centers and rewrite course catalogs, Axios' Erica Pandey writes. 🖼️ The big picture: DEI programs, many of which sprang up in 2020 amid Black Lives Matter protests and a national reckoning on race, often involve running cultural centers, ensuring diversity in hiring, and developing training programs to promote inclusiveness. They have become a favorite target for Republican governors, and President-elect Trump has promised a nationwide crackdown. Florida, Texas, Iowa and Utah have banned DEI offices and initiatives at universities. Alabama restricted them. Institutions in these states are responding with sweeping changes — many of which are broader than what the laws dictate: The University of Utah and Weber State University in Ogden both eliminated all their cultural centers — including resource centers for Black students, LGBTQ students and women, The Salt Lake Tribune reports. University of North Texas administrators made hundreds of edits to the titles and descriptions of courses to take out references to race and equity, according to the Texas Tribune. 👀 What we're watching: Universities in states that haven't yet implemented DEI bans are also cutting programs. "There's an epidemic of pre-compliance and over-compliance," says Jeremy Young, the Freedom to Learn program director for PEN America. The University of Missouri got rid of its DEI office to pre-empt anti-DEI legislation, notes Inside Higher Ed. The University of Michigan, which has one of the most ambitious and well-funded DEI programs in the country, is axing diversity statements in faculty hiring and promotion, the N.Y. Times reports.

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💰 Anti-DEI investing gets Trump bump

Illustration: Sarah Grillo/Azios

A group of President-elect Trump's MAGA allies is seizing on his election to push a new ETF focused on investing in companies that reject DEI initiatives, which Trump has railed against, Axios' Sophia Cai writes. Why it matters: The exchange-traded fund — pitched to potential investors last week during a meeting at Mar-a-Lago — is the latest example of a Trump-inspired backlash to corporations and retailers that some conservatives see as promoting overly progressive social agendas. State of play: Trump's team says the president-elect isn't involved with the ETF, which is dubbed the Azoria Meritocracy fund. But the fund's CEO and cofounder James Fishback is a friend of Trump ally Vivek Ramaswamy. Last week, Trump himself popped into the meeting of potential investors, who included Cathie Wood, founder of Ark Invest. Fishback says the new fund will mirror the S&P 500 — but will exclude three dozen companies it sees as using DEI quotas in hiring or promotions. ps:I guess they'll also claim they didn't see this coming??????????

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New DEI fight

Via X

Nothing revs up MAGA like the chance to dunk on DEI — diversity, equity and inclusion.  DEI-bashing is the core of the "anti-woke" theology. MAGA warriors want a true color/gender-blind meritocracy, they say.   Why it matters: MAGA's DEI unity has hit a big snag. Elon Musk — a MAGA fanboy and fav until this past week — and others on X are arguing forcefully that in a true meritocracy, you'd pick harder-working foreigners for high-skilled gigs over less-qualified Americans.  Steve Bannon and many MAGA originals consider this apostasy — basically another high-end, rich-guy way to screw the working-class voters behind the Donald Trump movement.  Welcome to the new frontier of the DEI.  Musk tweeted last evening: "The point was not to replace DEI, which is one form of racism/sexism, with a different form of racism/sexism, but rather to be a meritocratic society!" 🖼️ The big picture: N.Y. Times columnist David Brooks points out this isn't a "discrete one-off dispute." "This is the kind of core tension you get in your party when you do as Trump has done: taken a dynamic, free-market capitalist party and infused it with protective, backward-looking, reactionary philosophy," Brooks writes. "We're going to see this kind of dispute also when it comes to economic regulation, trade, technology policy, labor policy, housing policy and so on." Lead story of today's N.Y. Times, front-page story of today's Washington Post 💣 The latest: Musk vowed last night to "go to war" to defend the H-1B visa program for foreign tech workers, branding some Republican opponents as "hateful, unrepentant racists," Axios' Ben Berkowitz writes. Why it matters: The MAGA-DOGE civil war that erupted over the last 48 hours has hit a tipping point, with President-elect Trump's new techno-libertarian coalition of billionaires taking full aim at his base. Trump faces a deepening conflict between rich, powerful advisers — and the people who swept him to office. Steve Bannon, one of the longest-tenured voices in Trump's orbit, had multiple guests on his show this week to talk about his hardline anti-H-1B views. Bannon tells Axios he helped kick off the debate with a now-viral Gettr post calling out a lack of support for the Black and Hispanic communities in Big Tech. Go deeper: Axios explainer on H-1B visas.

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McDonald’s is the latest company to roll back diversity goals

Four years after launching a push for more diversity in its ranks, McDonald’s is ending some of its diversity practices, citing a U.S. Supreme Court decision that outlawed affirmative action in college admissions.

https://apnews.com/article/mcdonalds-diversity-dei-goals-845d94cd46511341a43e98e057b0fa8e?

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More DEI fallout: Air Force scraps course that used videos of Tuskegee Airmen and female WWII pilots

WASHINGTON (AP) — The Air Force has removed training courses with videos of its storied Tuskegee Airmen and the Women Airforce Service Pilots, or WASPs — the female World War II pilots who were vital in ferrying warplanes for the military — to comply with the Trump administration’s crackdown on diversity, equity and inclusion initiatives.

https://apnews.com/article/air-force-dei-tuskegee-women-wwii-pilots-ecdeac68dc7696535d093c7690ab73bc?

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Bucking the trend

Some of the biggest companies in the US — including Amazon, Meta, Walmart and McDonald’s — have ended or scaled back their diversity, equity and inclusion programs. One of America’s biggest beauty brands is standing firm.

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New DEI rollbacks

Illustration: Allie Carl/Axios

Goldman Sachs is canceling a pledge to ensure diversity on the boards of companies it helps go public, Axios' Nathan Bomey reports. It's the latest rollback of corporate diversity, equity and inclusion initiatives, which have sparked intense criticism from conservatives. Goldman confirmed today that it's ending its commitment to making sure every company it shepherds through the IPO process in the U.S. or Western Europe had at least two board members who weren't white men. The pledge also called for at least one of those two members to be a woman. 🔎 Context: The company told Axios in 2022 that the policy was working. Since then, a federal appeals court ruled against a Nasdaq board diversity requirement. And the Supreme Court's ruling against affirmative action in college admissions has also been seen as a bad omen for DEI programs. 🎬 Disney also announced changes to some of its diversity policies today, though they're less dramatic than the steps other Fortune 500 companies have taken, Axios' Sara Fischer reports. The company is scrapping a program that highlighted stories and talent from underrepresented communities. It's also retooling the role diversity plays in decisions about executive compensation. It's altering disclaimers about "stereotypes or negative depictions" that accompany some older films on Disney+. Keep reading ...

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DEI blowback

Dozens of Fortune 500 companies are backtracking on their diversity, equity and inclusion programs, but Target has faced the fiercest backlash. Customers, the heirs to one of its founders and civil rights activists said they’re feeling betrayed.

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The concept of Diversity, Equity & inclusion (which is a good thing) allowed itself to be hijacked by perverts and the mentally ill. Basically Liberal Democrats allowed a good idea to be perverted and destroyed, they created their own version of "Frankenstein's Monster" and that monster is literally killing the Democrat Party and will be soon desecrating the corpse of it. 

I for one hope the Democrat Party can give itself a mighty enema and clean out the impacted dung that caused its loss this last cycle. We need at least two healthy Parties to compete for votes - that's where the average American wins.